According to financial experts, a home is the single largest purchase typically made in life. As a result of this fact, it is imperative to learn how to negotiate the best deal on a mortgage loan.
When shopping for this type of loan, you may find yourself immensely overwhelmed. You must consider the interest rate associated with the loan, the underwritten costs of the loan, and the types of homes that you may obtain a mortgage. Somerville National Bank is committed to providing its customers with the most accurate and up-to-date information pertaining to mortgage loans. In this brief guide, we will outline a few simple strategies that will help you in negotiating the absolute best mortgage option for your needs.
Mortgage Types
The first step to ensuring that you get the best loan possible is to become familiar with the types of mortgages that are currently available. As of right now, there are two main types – the fixed-rate mortgage, the adjustable-rate mortgage.
The fixed-rate sets a specific interest rate for the term of the loan, ensuring that you are able to obtain monthly payments that are predictable.
The adjustable-rate options typically start with a low rate in interest as a means of introducing you to the payments and change as the index rate changes. In the beginning, the adjustable-rate mortgage may have low payments; however, you must understand that – over time -these payments are likely to increase, and the increase may prove to be quite substantial.
Mortgage Costs
Once you have a solid understanding of both the fixed-rate mortgage option and the adjustable-rate option, you should then look at the specific costs included in the mortgage. In most instances, you will be provided with paperwork that is referred to as a “Loan Estimate”. This provides a detailed summary of the terms of the loan, the estimated costs of the loan itself, application costs, closing costs, and any other related costs.
Many of the costs outlined in this document – which is required by law – benefit the mortgage company/lender directly. It is important to know and understand that these may be negotiated in order to bring down the overall expense. If you have any questions about any terms outlined in this, you may direct them to a banking professional for a detailed explanation.
Utilize a Housing Counselor and Other Financial Experts
Finally, you should make use of housing counselors and other financial experts in your search for a mortgage. You may locate counselors through the Department of Housing and Urban Development (HUD). You may call this agency directly by dialing 1-800-569-4287.
To speak with a financial expert, you may visit one of our several bank locations. Somerville National Bank has many financial professionals that carry a lot of knowledge and experience in the field of mortgages. Our experts are also able to provide sound strategies and techniques for negotiating mortgages.
If you would like to start the process today, simply click on the following link for the address information to our branches: http://somervillebank.net/locations/
Somerville Bank has 8 Locations